Paxful CEO preaches Bitcoin self-custody and advises against crypto exchange

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The case for self-custody is growing stronger as investors demand proof of their assets on crypto exchanges. While some CEOs have chosen to double down on efforts to keep funds safe on their platforms, Ray Youssef, the CEO of crypto exchange Paxful, has sided with the idea of ​​self-custody in taking responsibility for over 11 million users.

The fall of FTX was an eye opener for investors who have primarily entrusted crypto exchanges with protecting their assets. FTX CEO Sam Bankman-Fried, however, broke that trust by embezzling user funds through Alameda Research. Since then, many exchanges have had to publicly share information about their portfolio as proof of reservations.

Will send out an email every week strongly recommending that our employees never hold savings on any exchange, including @paxful That’s it! Self-custody of your savings ALWAYS! pic.twitter.com/DI95Gaa5Y6

Ray Youssef (@raypaxful) December 11, 2022

In a tweet, Youssef distanced himself from others in the industry, reiterating that he never touched investors’ money, adding that:

My only responsibility is to help and serve you. This is why today I am sending a message to all our [Paxful] users to move your Bitcoin into self-custody. You should not keep your savings on Paxful, or any exchange, and only keep what you trade here.

Youssef will send weekly emails to users strongly advising against storing cryptocurrencies on all crypto exchanges, including Paxful. The entrepreneur further highlighted the trust issue of custodians such as SBF, stating that you are at the mercy of [] their morals.

Thanks to Satoshi Nakamoto, Bitcoin (BTC) as an asset is protected from centralized control and manipulation. Youssef highlighted this unique opportunity that Bitcoin brings to the table the chance to finally be in control.

While he strongly advised users to take full control of their assets, Youssef ensured the safety of their funds for investors who choose to store their Bitcoin on Paxful. Additionally, the entrepreneur plans to remove Ether (ETH) from Paxful as a tradable asset citing the lack of integrity with respect to the Bitcoin ecosystem.

Paxful’s Ether removal plan came after Jeremy Garcia, the founder and CEO of Satoshis Journal, pointed out Ethereum’s poorly designed protocol.

Related: Evidence of Binance Reserves Raises Red Flags: Report

SBF made headlines after revealing plans to set up a new company to repay FTX investors.

I would give anything to be able to do this. And I’ll try if I can, the infamous entrepreneur said when the BBC recently asked him in an interview if he should start a new business to pay back FTX users.

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